All-Ways Logistics v. USA Truck

CourtCourt of Appeals for the Eighth Circuit
DecidedOctober 1, 2009
Docket08-1054
StatusPublished

This text of All-Ways Logistics v. USA Truck (All-Ways Logistics v. USA Truck) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
All-Ways Logistics v. USA Truck, (8th Cir. 2009).

Opinion

United States Court of Appeals FOR THE EIGHTH CIRCUIT ___________

No. 08-1054 ___________

All-Ways Logistics, Inc., * * Appellee, * * Appeal from the United States v. * District Court for the * Eastern District of Arkansas. USA Truck, Inc.; USA Logistics, * * Appellants. * ___________

Submitted: September 25, 2008 Filed: October 1, 2009 ___________

Before MURPHY, BOWMAN, and BENTON, Circuit Judges. ___________

BOWMAN, Circuit Judge.

This breach-of-contract case arises out of a commission agreement entered into by All-Ways Logistics, Inc., and USA Truck, Inc. Following a jury trial, the District Court1 awarded All-Ways approximately $3 million on its breach-of-contract claims, as well as prejudgment interest and attorney fees. USA Truck appeals, arguing that the District Court erred by (1) failing to instruct the jury on an affirmative defense, (2) awarding prejudgment interest, and (3) awarding an unreasonable amount of attorney fees. We affirm.

1 The Honorable Susan Webber Wright, United States District Judge for the Eastern District of Arkansas. I. All-Ways works as an independent agent for freight carriers, soliciting loads of freight from shippers and then tendering the loads to carriers for transport. USA Truck is a freight carrier. All-Ways and USA Truck entered into a commission agreement in 1999. Under the agreement, USA Truck was to pay All-Ways a five percent commission on freight that All-Ways solicited and USA Truck transported. All-Ways brought several shipping accounts (or books of business) to USA Truck, the largest of which were Rheem Manufacturing Co. and W.W. Grainger, Inc. The parties operated under the commission agreement without incident for more than two years. Then in March 2002, USA Truck informed All-Ways that All-Ways's services were no longer needed—and that commissions would no longer be paid—on the Rheem account. USA Logistics, a logistics division of USA Truck, had begun contracting directly with Rheem to arrange for USA Truck to meet Rheem's transportation needs. USA Truck continued to transport Rheem's freight but stopped paying All-Ways a commission on that freight. All-Ways repeatedly complained to USA Truck about USA Truck's actions on the Rheem account. The parties continued to operate under the commission agreement for other shipping accounts. In the fall of 2004, USA Truck began negotiating an arrangement with Grainger whereby Grainger would bypass All-Ways as a shipping agent and deal directly with USA Truck. In August 2005, USA Truck notified All-Ways that USA Truck was canceling the commission agreement. Under the cancellation clause in the agreement, the cancellation became effective on October 6, 2005.

In May 2006, All-Ways filed suit against USA Truck and USA Logistics, alleging violations of Arkansas contract law.2 All-Ways asserted that under the terms

2 In its complaint, All-Ways makes no distinction between USA Truck and USA Logistics in All-Ways's allegations of wrongdoing. Nor do the parties distinguish between USA Truck and USA Logistics in their briefs; they simply refer to "USA." Thus, the Court's references to "USA Truck" in the remainder of this opinion generally should be read to include USA Logistics.

-2- of the commission agreement, USA Truck owed All-Ways a commission on freight that USA Truck transported through October 6, 2005, for the Rheem account, the Grainger account, and the other accounts solicited by All-Ways. At trial, at the conclusion of the evidence but before submission to the jury, the District Court entered judgment for All-Ways on its breach-of-contract claim for the Grainger account and awarded damages in the amount of $40,268. The jury then returned a verdict for All-Ways on its breach-of-contract claim for the Rheem account and awarded damages in the amount of $2,966,880. USA Truck filed a number of post-trial motions, which the District Court denied. The District Court awarded All-Ways about $583,000 in prejudgment interest, $18,000 in costs, and $1 million in attorney fees.

On appeal, USA Truck contends that the District Court abused its discretion by (1) failing to instruct the jury on the affirmative defense of waiver of breach by acceptance of benefits, as it applied to the Rheem account, (2) awarding prejudgment interest to All-Ways because the commission amount was unliquidated and speculative, and (3) awarding attorney fees of more than $1 million based, in part, on a contingent-fee arrangement.

II. USA Truck's first argument is that the District Court erred when it refused USA Truck's proffered jury instruction on the affirmative defense of waiver of breach by acceptance of benefits. USA Truck's theory of defense was that All-Ways waived USA Truck's breach of the commission agreement as to the Rheem account by continuing to accept commission payments for shipments made on other accounts. The District Court concluded that the facts of this case did not support USA Truck's theory and declined to instruct the jury on waiver.

We review alleged errors in the jury instructions given by a district court for abuse of discretion. Brown v. Sandals Resorts Int'l, 284 F.3d 949, 953 (8th Cir.

-3- 2002). In our review, "we ask whether the instructions, taken as a whole and viewed in light of the evidence and applicable law, fairly and adequately submitted the issues in the case to the jury." Moses.com Sec., Inc. v. Comprehensive Software Sys., Inc., 406 F.3d 1052, 1061 (8th Cir. 2005) (internal quotation marks and citation omitted). A district court must instruct the jury on a party's legal theories if the theories are legally sound and supported by the evidence. See id. "We will sustain the district court's decision not to give an instruction if the instruction is unsupported by the evidence." Id. In diversity cases such as this one, "the substance of the jury instructions must fairly and adequately represent the law of the forum state." Brown, 284 F.3d at 953; see also Moses.com, 406 F.3d at 1061.

USA Truck proffered the following instruction based on Arkansas Model Jury Instruction (AMI) 2437:3

DEFENSE—WAIVER OF BREACH BY ACCEPTANCE OF BENEFITS USA contends that All-Ways waived any breach of their contract regarding non-payment of commissions on freight relating to the Rheem account and has the burden of proving two essential propositions:

3 AMI 2437 reads:

DEFENSE—WAIVER OF BREACH BY ACCEPTANCE OF BENEFITS

[Defendant] contends that [plaintiff] waived a breach of their contract and has the burden of proving two essential propositions: First, that [plaintiff] knew [defendant] had breached their contract; and Second, that [plaintiff] continued to accept benefits under the contract and allowed [defendant] to continue his/her performance of the contract. [If you find from the evidence in this case that both of these propositions have been proved, then your verdict should be for [defendant]].

-4- First, that All-Ways knew USA had breached their contract regarding payment of commissions on Rheem freight; and Second, that All-Ways continued to accept benefits in the form of commissions on other accounts under the contract and allowed USA to continue its performance of the Commission Agreement.

Appellants' Br. Add. at 41. USA Truck asserts that the giving of this instruction was supported by the fact that after USA Truck stopped paying commissions to All-Ways on the Rheem account in 2002, the parties still performed under the commission agreement for other accounts.

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All-Ways Logistics v. USA Truck, Counsel Stack Legal Research, https://law.counselstack.com/opinion/all-ways-logistics-v-usa-truck-ca8-2009.